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BrokerWorldfor the professional finance broker
issUe 29 JUne 2014t
Many brokers have felt challenged by all the FCA regulations and requirements that suddenly seemed
to apply to them, and the topic of registering for Interim Permissions has been a regular topic in these columns. But this is just the start, and now the next steps of the journey have to be tackled. The large brokers have recruited their own inhouse specialists to deal with this aspect of their business so they are more relaxed about it, and the broker funders of course have access to top legal experts to advise them on every twist and turn, but for the smaller independent brokers it’s been a major headache.
Some help has been available to this latter
group, from the NACFB, from seminars put on by broker funders, offers of cooperation from the larger brokers, even regular articles published in BrokerWorld by legal experts. But now, one broker funder has stepped up a gear, with Hitachi Capital Business Finance (“HCBF”) making a significant investment in Compliancy Services’ package to support the broker market. HCBF’s new compliancy service, which has already launched with sessions for several cohorts of brokers, including those block discounting users that work with Shaun Carroll, takes brokers through a computer based process that enables them to meet new FCA requirements without causing a detrimental strain on
Asset Finance News Crowdfunding: unearthing the hidden risks 6
GEF: Secrets Revealed 12
Legal Are you entering into contracts with “consumers”? 18
Association News An exercise in future tense from Adam Tyler, CEO NACFB 19
Mike Hartley, MD Praetura Finance
Groundbreaking moves to help brokers
Close Brothers Business Finance is a trading style of Close Brothers Limited. Close Brothers Limited is registered in England and Wales (Company Number 00195626) and its registered office is 10 Crown Place, London, EC2A 4FT.
Speak to us today on 0333 200 6256 or visit www.closebusinessfinance.co.uk
Speed of service Smart fundingWorking across a variety of industries, from agriculture and construction to manufacturing and transport, our team of specialists understand the challenges faced by businesses.
Our speed of service enables us to support Brokers with finance solutions responding directly to the customers’ needs.
Speak with one of our local Broker Development Managers today to discuss the smart funding options for your clients.
s
See us at NACFB Expo Stand G18
Max Reid, GEF
See us at NACFB Expo Stand F03
2 JUne 2014
Featuretheir business.
With the small business sector vital to the UK economy’s return to growth – and with red tape cited as the biggest challenge
holding back small firms – HCBF has teamed up with leading compliance firm to offer brokers a straightforward support package to ease the burden of authorisation and give them an effective platform for achieving and retaining FCA compliance.
This comes at a time when it has been reported that small businesses are spending a combined £16.8 billion a year dealing with regulation, while the UK still languishes 89th out of 139 countries in the league table of regulatory burden on business.
Broker reaction to the service HCBF has invested in has been unprecedented. Following an initial engagement among 200 brokers, more than 80 percent have
booked in for the free service, which is one of a number of added value services HCBF provides to invest in the health and future of its broker community.
Gavin Wraith-Carter (left), Head of Risk at Hitachi Capital Business Finance said, “After many years of broken trust in the big banks, the integrity of the broker sector depends heavily on everyone fully embracing the regulatory regime, particularly the need for a strong and disciplined market. The reality for many brokers, however, is the amount of time and money involved in getting authorised is a real challenge. For many, this could result in walking away from the market or not taking on regulated business.
“We believe in the sector working to the highest professional standards, and also recognise the vital choice that brokers bring to the market. Our decision to help the broker community through the FCA process is an investment in the future of the sector and we hope it sets an example others will choose to follow. The National Association of Commercial Finance Brokers is also doing some great work in raising standards and awareness and we very much look forward to collaborating with them over the coming months.” bW
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T: +44 (0)1905 621444F: +44 (0)1905 621444E: [email protected]
Published by LeasingWorld Ltd, Oakhill House, Uphampton, Droitwich Spa, Worcs WR9 OJR, UK Reg office: 26 Sansome Walk, Worcs WR1 1LX. Company No: 5387699. ISSN 1749-3501
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BrokerWorld
Anyone for Polo?For the world of the asset finance industry the polo season kicked off in style last weekend, with the LDF International polo tournament seeing the industry’s finest descend on Chester racecourse for a couple of glasses of Pimms, and a series of thrilling matches.
Four teams fought over two days for the grand prize of £10,000, including teams sponsored by luxury jeweller Boodles, and premium champagne brand Laurent Perrier.
Despite some traditional British rain,
even those unfamiliar with polo couldn’t help but enjoy the day. Veteran polo commentator, Simon Ledger, soon got the crowds going and took time out to explain polo’s unique vocabulary – of chukkas and tailshots.
As well as enjoying the inevitable networking that takes place when you have so many members of the asset finance industry at the same sports event, the crowd also enthusiastically joined in the Divot Stomping Competition held between every chukka to win prizes for finding hidden tokens on the pitch.
Polo is known as the Game of Kings, and Chester Racecourse is firmly established on the British Polo circuit and is home to many premier events, including playing host to the Audi International Polo Series. Chester is the oldest racecourse in the UK and possibly the world, with the first recorded race held on February 9th, 1539.
This year is LDF’s first year as official lead sponsor of the polo at Chester – taking over from Close Brothers Asset Finance – and is part of LDF’s expanded marketing.
Working with new investors Cabot Square Capital has been exciting, according to Peter Alderson, he states that they invested in LDF as they can see real scope for it to grow. With traditional high street banks still struggling to meet demand from businesses for competitively priced funding there is a real opportunity for businesses like LDF to expand into that space vacated by the banks.
NEWS IN BRIEF
JUne 2014 3
Asset Finance News
l to r peter alderson, richard thomas (captain of stella artois team)
Hitachi Capital (UK) Ltd Business Finance | T: 08432 082244 | www.hitachicapital.co.ukHitachi Capital Business Finance is a division of Hitachi Capital (UK) Ltd PLC. | Registered Office: Hitachi Capital House, Thorpe Road, Staines-upon-Thames, Surrey TW18 3HP | Registered in Cardiff No: 1630491.
At Hitachi Capital we:
What’s important to you?
on what you say.
&
It is what’s important to us.
At Hitachi Capital Business
Finance understanding
what is important to you is
the foundation on which our
personalised service is built.
Our inspired funding solutions
are created to meet the needs
of you and your clients,
contributing to your success.
See us at NACFB Expo Stand G19
4 JUne 2014
Asset Finance News
IAF new Portfolio Risk head
Investec Asset Finance Plc (“IAF”) has announced the appointment of Jane Mantell (above) as Head of Portfolio Risk, with immediate effect. Jane’s remit will include the IAF portfolio, as well as the portfolio from the newly acquired commercial and consumer motor finance brokerage, Mann Island Finance Limited. She will also be responsible for establishing a model-based framework for decision-making, capital and provisioning, as well as all aspects of business intelligence.
Jane joins Investec from the consultancy firm Insight Plus, where she
has worked since 2007, with financial clients including: Lloyds Banking Group, Kensington Mortgages, Barclays, Northern Rock, Close Brothers Asset Finance and Lombard. Before that, she spent nine years with Foxreed Consulting.
Jane’s appointment follows her involvement in assisting with the Investec Credit Risk Team on a consultancy basis, supporting them in recently winning the “Credit Risk Team of the Year” at the 2014 Credit Today Awards.
Andy Higgins, Head of Credit at Investec Asset Finance, said, “We are delighted that Jane has joined the team. She has already helped to ensure we have an award winning Credit Risk Team and her industry experience and expertise will be invaluable in helping the team embed business intelligence in everything we do, and move from strength to strength.”
Jane Mantell added, “I am pleased to be joining Investec Asset Finance on a permanent basis at such an exciting time. I have already worked closely with the team and am looking forward to continuing to deliver progressive credit risk solutions in the future.”
Ladies take tea at the Ritz
Hitachi Capital Business Finance treated customers to a Ladies Day outing in London with a “Tea at the Ritz” experience recently. We’re not talking Ritz crackers here, we’re talking the London hotel, famous for its luxury and grace, offering exquisite tea, finely cut sandwiches, freshly baked scones, jam and clotted cream with a range of delicate pastries, as well as a glass of champagne to the special guests on arrival.
This event is one of many organised by the Hitachi Capital Business Finance marketing team over the year, including Golf at the Belfry Hotel, and the Henley Regatta planned for over the summer.
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01256 316200 assetadvantage.co.ukAsset Advantage, Third Floor, Matrix House, Basing View, Basingstoke RG21 4DZ
Using a combination of experience, expertise, the application of commercial common sense and uncompromising business processes we have quietly gone about the business of creating value for all our stakeholders for the best part of two decades
Asset Advantage is an established, privately owned, finance business which provides asset finance and unsecured loans to UK based SMEs via a premium panel of introducers
Creating value
Efficient Finance is our Advantage
AA BrokerWorld ver.indd 1 13/05/2014 13:30:02See us at NACFB Expo Stand G06
The new support package, provided by specialist consultancy Compliancy Services, is aimed at
enabling brokers to meet and maintain the new FCA regulatory requirements without creating a detrimental burden on their business.
With the first “landing slots” beginning this month, the task of applying for authorisation is already at the forefront of brokers’ minds. The FCA said publicly a few weeks ago that, “…you should start to prepare your application now as it may take you some time to gather the information we need.”
Highlighting the significance of the new partnership to the broker community, Ben Mason, Joint CEO of Compliancy Services, said, “Assisting the Consumer Credit market achieve and maintain
compliance with the regulations is a strategic priority for us. Our innovative support service combines expert guidance from our FCA compliance specialists with practical tools and templates that brokers can use to fulfil the requirements of the FCA regime.”
“It’s not only the challenge of achieving authorisation in the first place that brokers need to face,” Mason continued. “It’s vital they understand the importance of maintaining compliant policies and procedures as an integral part of how they operate their businesses in order to retain their authorised status over the long-term.”
With the small business sector vital to the UK economy’s return to growth – and with red tape cited as the biggest challenge holding back small firms – Hitachi Capital chose to partner with
Compliancy Services to offer brokers a straightforward solution for achieving and maintaining FCA compliance.
Broker reaction to the new service has been overwhelmingly positive, with more than 90 percent having already signed-up for the free service. Mike Eaton, Director of Paragon Finance, said, “For independent finance brokers like ourselves, the need to be FCA compliant is a major concern, and for [Hitachi Capital] to step in and help to ensure that we achieve this is a wonderful gesture.”
Steve Moody, Director of SKM Asset Finance added, “Smaller independent brokers are unlikely to be able to afford to employ a full-time compliance specialist, so free access to the services of a compliance consultancy is an enormous difference-maker for us.” bW
JUne 2014 5
hitachi capital partners with compliancy services to help brokershitachi capital business finance has made a significant investment in a comprehensive compliance service to support the broker market
For authorisation application support call us today on
01462 429705
The FCA Consumer Credit Compliance Specialists
www.fcaconsumercredit.com
6 JUne 2014
Asset Finance News
Crowdfunding: Unearthing the hidden risksMike Hartley (above) is managing director at Praetura Asset Finance, which launched in January 2014. Praetura specialise in asset finance for SMEs and are the first independently-owned asset finance company to enter the UK marketplace in 15 years. Mike sees crowdfunding as possibly carrying hidden risks for SMEs.
Traditionally, entrepreneurs have looked to major high street banks to provide their business with a cash injection, yet having tightened their purse strings in the post-crash era, it’s no surprise that alternatives such as
crowdfunding have rocketed in popularity. A hot topic within the SME
marketplace, crowdfunding has made headlines over recent months. However, the popularisation of the funding option means businesses are now using the online platform to raise capital for a multitude of reasons, without realising that there may be better suited options, within the finance market.
As with any new business investment, SME owners must consider the number of caveats prior to choosing the crowdfunding route. Not only is it an expensive option, but conditions of acceptance can often be difficult to achieve. As the loan facility provided is completely unsecured, the lender needs to focus entirely upon current and historic trading records, especially cash generation. This will make transactions with newer companies impossible, as trading records are not available. It will also restrict access to funds for business acquisition or turnaround type requirements.
Mike feels that when raising funds within a business, many people overlook asset finance. A less risky alternative, due to that fact that funding agreements are ring-fenced around the asset rather than the business; asset finance can offer smaller, regular repayments, enabling SMEs with limited capital to effectively manage their cash flow. Finally, asset finance repayments are deemed a business expense meaning they can be written off against your taxable profits, resulting
in a smaller tax bill. Many entrepreneurs forget that they’ll
have some form of assets within the business, whether that’s plant, machinery or vehicles. By considering asset finance, SMEs can raise funding against those assets. Having maximised what you can via asset finance, SMEs could then consider crowdfunding to raise additional capital; above and beyond that raised by utilising the business assets.
Hitachi Quiz team victoriousA team from Hitachi Capital Business Finance (including Mike Dobson!) was victorious at the Leasing Industry’s annual Great British Pub Quiz 2014, sponsored by New Leaf Search. The annual event was held at the The Counting House, Cornhill, London, and saw entries from the crème de les eggheads of the Leasing world come together to battle it out, and prove just who had the edge in pub quiz knowledge.
Beating off competition such as Asset Advantage (The Advantage Edge) and De Lage Landen Leasing (Drink-Loving Leasers!), the Hitachi Intellectual Capital team, The HIC’s as some referred to it, brought home the magnificent trophy in true Hitachi Capital Business Finance style.
The team, comprising Stuart Townsend, Tony Gagliardi, Andrew Murdoch, Geoffrey Wigg, Rajvir Deol and Mike Dobson, celebrated their No.1 win as true rockers, with pink champagne and prize pens.
NEWS IN BRIEF
T: 01872 272 900 F: 01782 270 902 E: [email protected]
www.ignitioncredit.co.ukIgnition Credit Plc, Sterling House, Green Court, Truro Business Park, Threemilestone,
Truro, Cornwall TR4 9LF
Sales Opportunities We would like to hear from Industry Professionals who are seeking Self Employment or Employed Positions
• All Areas of the UK• Flexible Packages• Advanced IT Platform• Pension Scheme• Be part of a winning team
Please send your CV to [email protected] or alternatively please give us a call.
We look forward to hearing from you.
JUne 2014 7
Of the win, Gavin Wraith-Carter said, “Yet another win for the team, I’m so proud. Well done to all.”
The award has taken pride of place in Hitachi Capital Business Finance’s reception (next to the others!).
Shawbrook impressesShawbrook Bank has published strong results for the year ending December 2013. The Bank’s growth resulted in a pre-tax profit of £16.8 million, a significant turnaround from an accounting loss before tax of £7.1 million in 2012.
Shawbrook recently acquired the asset-based SME lender Centric Commercial Finance from Cabot Square Capital LLP (recent buyer of LDF). The annual report
shows the bank as having total lending of £1.4 billion, originations of £1 billion in new loans to SMEs and consumers in the UK during 2013, new lending of over £700 million to SMEs in that period, and a total capital ratio of 17.3 percent at Group level.
Throughout 2013, Shawbrook has focused on the rapid organic growth of each of its business lines, now providing lending services to 52,000 customers. Asset Finance grew by 28 percent to £447 million (£349 million 2012), Secured Lending grew by 81 percent to £295 million (£163 million in 2012), and Centric Commercial Finance joined Shawbrook with over £200 million of SME advances
Richard Pyman, CEO of Shawbrook Bank, said, “2013 was a pivotal year for Shawbrook. Our specialist lending teams have focused on delivering a quality service with an unwavering emphasis on human underwriting and simple, straightforward processes. The result is outstanding organic growth across the business in 2013, and a significant rise in
SME lending. We are in excellent shape for future growth in 2014 and beyond.
“The acquisition of Centric Commercial Finance is an exciting strategic move for Shawbrook. We can now offer SMEs a broader range of funding services to support their growth aspirations, and the move will enable Shawbrook to become an even more prominent business lending bank. Centric’s dedication to traditional customer service and tailored lending solutions fits very nicely with our own, and we have ambitious plans to grow the business under Shawbrook this year.”
John Onslow, Chief Executive of Centric Commercial Finance, said, “We are delighted to be part of the Shawbrook family. We have been seeking a partner to support our growth ambitions and have a strong owner in Shawbrook that will enable us to drive further business growth. This is a natural match, both in terms of our product offering and because we share the same values and customer service ethos in meeting the ambitions of SMEs in the UK.”
NEWS IN BRIEF
Asset Finance News
Defi nition: Deep expertise and experience from CIT in global equipment fi nance.
Learn more about our UK leasing solutions.Visit cit.com/international or contact Paul Fazakerley on +44 (0) 781 055 0397 or [email protected]
© 2014 CIT Group Inc. CIT and the CIT logo are registered service marks of CIT Group Inc.
COMMUNICATIONS • OFFICE PRODUCTS • TECHNOLOGY
CIT knows equipment fi nance. CIT is the trusted lending and leasing
partner for the businesses that manufacture — and use — the equipment that
powers the global economy. Our customized fi nancial solutions for small
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deliver the capital and ideas they need to grow. Put Knowledge to Work®
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See us at NACFB Expo Stand A21
8 JUne 2014
Asset Finance News
New Catfoss appointmentCatfoss Finance is delighted to announce the appointment of Jonathan Simmons (above) as Sales Director. Catfoss Finance was formed in 2001 to provide finance to the farming, haulage and heavy plant industries, and is now one of the largest privately owned finance companies in the UK. Jonathan has extensive experience in the industry and joins the East Yorkshire based company from his former business development role with Praetura Asset Finance and previously Close Business Finance.
The appointment compliments Catfoss’s development plans to strengthen relationships with brokers and introducers and to jointly hone product and service delivery. It comes just months after the firm moved to new purpose built offices in Driffield, East Yorkshire, allowing the company to build on its expansion of recent years.
Commenting on the new appointment, Director Justin Owen said, “This is a significant appointment for the company which, together with our new headquarters, provides us with both the secure base and the scope to allow for further expansion. Jonathan brings highly valued experience and new expertise to Catfoss, and will continue our approach of achieving growth by forming close working relationships within our trading sectors.”
Fineline Media in RGF dealFineline Media Finance has provided an important funding facility to UK broadcast solutions provider Cloudbass. As well as purchasing new camera chains and cabling for its outside broadcast arm,
the deal also qualified for 20 percent Regional Growth Fund (“RGF”) funding thanks to the creation of four new full-time positions at the company.
Cloudbass was formed in 2002 and after a long period of steady growth its expansion has accelerated recently. In 2012 it acquired significant assets of Arqiva Outside Broadcast enhancing its HD fleet, and has also recently set up Cloudbass Graphics as a dedicated division based at Pinewood Studios.
The new equipment – 4x Sony PMW-500 Cameras, Canon Lenses & Accessories supplied by CVP; SMPTE Cabling supplied by WTS – will help the company continue the programme of investment in trucks and equipment that is required to support the higher profile contracts it is now tendering for. Recent Outside Broadcast projects include the Skrill Premiership and Women’s Super League coverage for BT Sport, ITV’s BTCC coverage including full RF facilities of which the new kit forms a part, continuing coverage of BBC’s Question Time, as well as being at 192 Premiership Football matches for Premier League Productions.
Steve Knee, Managing Director, Cloudbass, said, “Up until three years ago we had never financed anything, always buying in cash or hiring additional kit. However, comparing the cost of hiring versus financing a purchase, it now makes much more sense to buy the equipment, particularly as we are confident that it will open doors to bigger contracts. Fineline has been one of the main finance houses that has enabled us to leverage growth that has seen us double in size three times in as many years.”
With growth already leading to 16 new positions being created by the company in the past year and more required, bringing forward planned job creation – thus securing the maximum level of Regional Growth Fund funding permissible under the scheme – made perfect sense for the company. Furthermore, the increased level of deposit position this conferred also enabled Fineline to fund less standard assets via the deal, such as cabling, which
is traditionally avoided by asset funders but is a crucial part of OB operation.
Steve added, “The Fineline team understands where we are going as a company and what we want to achieve. They understand the nature of the business and are very quick to react, going the extra mile whenever required.”
Full details of eligibility can be found at http://www.fineline.co.uk/finance-products/regional-growth-fund Those interested can contact Fineline Media Finance on 020 8334 2100 or email [email protected]
Asset Finance Solutions updateAsset Finance Solutions (“AFS”) are pleased to announce that Emma Marsden, inhouse Compliance Supervisor, has passed her Advanced Compliance examination awarded by the International Compliance Association, this adds to her International Compliance qualification that she gained last year.
On the new business side, David Davies of Davies Finance Crewe has become a new Franchisee of AFS – Dave is very well known in the industry and made the decision to join AFS in May. Joining Dave is Beechwood Finance in Gainsborough, and First Finance in Worcester, again these are well established brokerages who have seen the benefit of becoming part of the AFS network. AFS is pleased with its performance this year to date, it is understood that the group enjoyed a record May, influenced in part by strong activity in commercial vehicles.
AF-PA golf proposalFollowing the success of AF-PA’s recent golf day the formation of a Golf Society has been proposed. The Society could meet quarterly, at different venues, and raise funds for small charities.
The proposal is to pay an annual membership of £50 of which 50 percent will go towards charity and the rest towards subsidizing the event for members. Non-members welcome but would have to pay an additional £10 on top of what the members pay (towards charity). Next event to be an agreed date in August in the vicinity of the M25 (south), sponsorship of the society very welcome, proceeds go to charity and members events.
Confirm if you would be interested to join with [email protected]
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FOR INTERMEDIARY USE ONLYAldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662.
w aldermore.co.ukt 0118 955 6600
talk to us today:
We won’t keep you waiting
A better asset finance service overall
Our dedicated broker team have a track record in delivering a fast and reliable service. We understand that having a decision in hand will allow you to work more effectively with your customers and our specialists can get a decision in most cases within a few hours. Our industry expertise allows us to review every deal and in many cases provide funding where others may not, it’s all part of our commitment to supporting the Broker market.
• Fast decisions and straightforward pay outs • Experts across all classes • Named contacts across sales support and credit
406972.001 Asset Finance Generic ad Refresh.indd 2 01/04/2014 12:00
FOR INTERMEDIARY USE ONLYAldermore Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662.
w aldermore.co.ukt 0118 955 6600
talk to us today:
We won’t keep you waiting
A better asset finance service overall
Our dedicated broker team have a track record in delivering a fast and reliable service. We understand that having a decision in hand will allow you to work more effectively with your customers and our specialists can get a decision in most cases within a few hours. Our industry expertise allows us to review every deal and in many cases provide funding where others may not, it’s all part of our commitment to supporting the Broker market.
• Fast decisions and straightforward pay outs • Experts across all classes • Named contacts across sales support and credit
406972.001 Asset Finance Generic ad Refresh.indd 2 01/04/2014 12:00
10 JUne 2014
Asset Finance News
Aldermore celebrates five yearsAldermore is celebrating five years of providing banking services to SMEs across the UK. The bank, which was founded in May 2009, has experienced significant growth each year. In the first quarter of 2014, Aldermore, which posted a pre-tax profit of £22.4 million in 2013, provided a further £358 million of net lending to business and individuals increasing its total loan book by 11 percent to £3.7 billion.
Aldermore, who are the headline sponsor for LeasingWorld’s Expo in October and the after-dinner Leasing World Awards party that same evening, provides straightforward banking to SMEs in the form of asset and invoice finance services online, via intermediaries, and from 12 regional offices across the UK. This approach is proving attractive and customer numbers have grown rapidly over the last five years.
In 2013, Aldermore became the first bank in the UK to offer its customers the ability to rate and review its service online. Feedback from customers says that
Aldermore delivers ‘banking as it should be’ which is a testament to its approach of building a bank shaped around its customers’ needs.
Aldermore Chief Executive Phillip Monks stated, “Aldermore was founded at a time when lending was severely restricted and I am proud that we have played a role in supporting the UK by getting funds flowing to the businesses and homeowners that so desperately needed them.
“We also wanted to create a bank that was straightforward and transparent, and one that gave businesses and consumers alike a level of customer service that had been lacking in the banking sector. This approach remains at the heart of our business today.”
George Osborne, Chancellor of the Exchequer and MP for Tatton, said: “I want to make sure businesses in my constituency have the maximum choice when it comes to banking services so I am pleased that Aldermore is doing its bit to support our local economy.”
It was also announced that Aldermore
ranked third in list of Funding for Lending Scheme participants for lending to SMEs, in the latest figures released by the Bank of England.
Aldermore’s net lending to SMEs as part of the scheme in the first quarter of 2014 was £88 million. This continues the Bank’s sustained increase in lending to UK SMEs. Aldermore’s total lending to SMEs last year (2013 calendar year) was up 53 percent to £1.69 billion, compared with £1.1 billion in 2012.
Commenting, Phillip Monks said, “With the economic recovery taking shape it has never been more important to ensure continued lending to small businesses up and down the country. I am delighted that Aldermore is third in the list of net lenders in the Funding for Lending Scheme and that we are increasing our loan book, especially at a time when many are pulling back from the market.
“Banks need to focus on making it easier for SMEs to access finance . . . We are determined to continue to support SMEs and increase our lending in the coming year.”
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Technology – making lending cheaper, faster and safer.With our innovative, secure and compliant lease management software and outsourcing services, offering everything from underwriting and customer servicing to collections, we help our customers achieve operational and customer service excellence. To fi nd out more, speak to one of our experts on 0844 8118 039 or visit www.nostrumgroup.com
@NostrumGroup TheNostrumGroup
See us at NACFB Expo Stand F05
JUne 2014 11
See us at NACFB Expo Stand G18
Feature
Close Brothers Business Finance is one of the leading sponsors at the 2014 NACFB Commercial
Finance Expo. This major annual event for brokers, and their funders, takes place on 25th June at the Pavillion in the NEC, Birmingham, and aims to inform small businesses about the range of business lenders that are active in the market.
Managing Director of Close Brothers Business Finance, Richard Briscoe (right) said, “The 2014 NACFB Commercial Finance Expo is the biggest event in our calendar, and we are delighted to be on board as sponsors again this year.
“This event is all about doing business. It’s a great opportunity for us to get in front of our network of brokers and raise awareness of the wide range of funding options available to them.”
“There is a vast lending gap that is increasingly being filled by alternative lenders like ourselves but our research
shows that 31 percent of UK SMEs are still unaware of asset finance and the benefits it can bring to their business. Events like these are so important as they give us the opportunity to address
that,” he added. This year Close Brothers are in
attendance at the event with a bigger and better offering to market. They are bringing together the knowledge and expertise of both their North and South offices, to enable them to widen the services available nationally.
Richard Briscoe elaborated, “Each of our offices has traditionally had their own specialisms, and our aim is to widen the reach of this expertise, offering our entire network of brokers the full suite of services we provide.” bW
close brothers business finance a proud sponsor of nacfb commercial finance expo
Close Brothers Business Finance is a trading style of Close Brothers Limited. Close Brothers Limited is registered in England and Wales (Company Number 00195626) and its registered office is 10 Crown Place, London, EC2A 4FT
Speak to us today on 0333 200 6151 or visit www.closebusinessfinance.co.uk
Business longevity Smart fundingIt’s important to us that we support our brokers and their clients and offer a variety of flexible finance products. Our expertise in refinancing has proven to be invaluable to businesses, allowing them to unlock the value from their assets.
Speak with one of our local Broker Development Managers today to discuss the smart funding options for your clients.
the 2014 nacfb commercial finance expo is the biggest event in our calendar
12 JUne 2014
Asset Finance News
NEWS IN BRIEF
GEF: Secrets Revealed
Why change, asks Max Reid (above) of General Equipment Finance (“GEF”)? He answers his question as follows:
“GEF was once an ordinary small finance company providing funding lines for office equipment brokers. We have been trading successfully in the UK for 10 years, acting much the same as other traditional funding lines, we offered commercial rates for operating and finance leases. However, in more
recent years, we have changed our ‘modus operandi’ and have recently secured multi-million pound backing from a select investment panel. We have already seen steady growth by acquiring ‘books’, blocks of brokered leasing deals from office, computer and IT leasing brokers. These brokers receive the value of their books years before they would normally be able to do so, by releasing the value tied up in them early. We are now looking to continue this success to the wider leasing broker community.
“How it works… It works in a very simple way. We work with the broker to assess the value of their portfolio however large or small. This is done quickly and confidentially and most importantly without commitment at this stage. Once a sale is agreed we have a unique document which is pre-agreed with most finance houses / funding lines to allow a broker to ‘sell on’ their brokered leasing deals. As the leasing portfolio is sold without recourse, the broker wins again by gaining a quick cash settlement for their deals whilst retaining their customer base.
“What it means to brokers….. GEF
have already helped numerous brokers release much needed cash. This has gone on to help them fund expansion, acquire new office premises or, as in one case, allowed the owners a well earned bonus to fund a Ferrari!
Contact: [email protected] or call 01144 372 034 and ask for Max Reid or Linda Maguire.
Don’t forget the AF-PA Summer drinksThe Asset Finance - Professionals Association (“AF-PA”) would like to remind everybody that their signature Summer Drinks event is coming up fast, on July 3rd, at The Marylebone Sports Bar & Grill , Marylebone Station, Melcombe Place, London, NW1 6JJ. If you are thinking of going then it’s wise to register with [email protected] to secure your place. If you haven’t but you would like to come along or bring a guest, let him know very quickly and he’ll add your name to the acceptance list. Name badges will only be available to those names on the acceptance list. 270 acceptances so far!
CALL YOURSELF A PROFESSIONALFINANCE BROKER??
CALL YOURSELF ‘a Professional Finance Broker’
�
arkle half page ad_Layout 1 20/12/2012 14:05 Page 1
JUne 2014 13
Profits up 50 percent at PCFGPrivate & Commercial Finance (“PCFG”) the AIM-quoted finance house, has announced its preliminary results for the year ended 31 March 2014.financial highlights:• Reported profit before tax up 50 percent
to £1.25 million (2013: £0.83 million)• Return on average assets increased by 50
percent to 1.5 percent (2013: 1.0 percent)• Basic earnings per share up 27 percent
to 1.4p (2013: 1.1p)• Net assets up 11.7 percent to £10.4
million (2013: £9.3 million)• Loan loss provisioning charge fell
by 11.5 percent to £2.0 million (2013: £2.3 million)
• £20.1 million (2013: £17.0 million) of unearned finance charges to contribute to earnings in future years
business highlights:• 29 percent increase in new business
volumes to £50.8 million (2013: £39.3 million)
• Total portfolio growth of 10.8 percent to £88.7 million (2013: £80.0 million)
• 36 percent increase in returning
consumer finance customers (2013: 48 percent)
• Over 65 percent of all new business originations falling within top two credit grades
• Record low level of arrears as portfolio quality continues to improve
• Committed debt facilities of £96.0 million (2013: £95.3 million) with headroom of £14.4 million to fund growth
• The banking licence application continues to progress with completion timetabled for March 2015Commenting on the results Scott
Maybury, CEO of PCFG, said, “There are many reasons to be positive about this strong set of results, particularly the 50 percent increase in profits to £1.25 million. The Group continues to originate higher volumes of new business, whilst our focus on the quality of the business underwritten is reflected in the further reduction of the loan loss provisioning charge. All of this has resulted in significant profit growth and a continuing improvement in our return on average assets, which is presently our key metric.
The headroom in our debt facilities gives us the scope to continue growing our portfolio and, with work continuing on our banking licence application, I am excited about the Group’s prospects in the coming years.”
Summer giveaway at Funding CircleAs part of Funding Circle’s ongoing commitment to introducers, this leading online marketplace for business loans is offering a double headed summer giveaway. Every introducer has the chance to earn more commission in June, by completing on more than £100,000 of business loans during June.
To be eligible, introducers must simply complete on more than £100,000 of applicable deals during the month to receive an extra 1 percent commission on the total amount completed, up to a maximum of £300,000. Applicable deals are unsecured, secured and asset finance deals.
Loans can be used for almost any purpose such as expansion, growth, working capital or asset purchase.
NEWS IN BRIEF
Asset Finance News
Asset, Bridging and Development FinanceWE NDERSTAND
Clear, straightforwardAsset Finance
- rolling out funding forwheeled & tracked assets
Contact us on 020 7190 5555www.utbank.co.uk
This information is strictly for the use of professional intermediaries only.
Sometimes thesimplest ideasare the best
15834 BWorld Half_v1 AA 02/09/2013 11:57 Page 1
See us at NACFB Expo Stand C01
14 JUne 2014
Our headline sponsor, Hitachi Capital Business Finance, has taken two tables – enough for
twenty guests – as a show of support for the event. Close Brothers Asset Finance makes the pre-dinner drinks reception sparkle, and Aldermore Asset Finance will keep the after-dinner celebrations partying till midnight. All the broker funders will be there, as well as many of the other mainstream funders, and the larger broking firms that have flowered so dramatically in the past few years.
To download our Leasing World Awards brochure just go to www.leasingworld.co.uk and click on the Awards skyscraper banner. The brochure lists the awards categories, timelines for nominations and shortlists, and dinner reservation information.
Most of our guests will have their eyes on one award or other, although this year nominations will be limited to two
categories maximum, so choose your categories with care. For brokers the interesting ones are Broker of the Year (award presented by Aldermore Asset Finance), Funders Choice Best Service Broker (based on a poll of funders), Top Hard Assets Broker, Top Business Assets Broker, and Broker Next Generation Award (also awarded by Aldermore Asset Finance).
broker next Generation . . . what’s that, we hear you say? It’s a category where you can nominate your brightest spark, your most talented up and comers, those new generation people that are already scarily good at what they do, and can prove it.
We always get asked, Is There a Template for the nominations? No, there is no template, because we don’t believe in templates for spotting talent. Having said that, when pressed the judges did give some words of advice:
rationale for award: This section must give the judges a clear explanation of:• The proposed winner’s general business
background • A brief overview of the business and
its products and activities together with core statistics and markets (Preferably not a mere cut and paste from a website)
• The rationale for the proposed winner of the category. This has to be made specific to the proposed award and it’s usually about the progress made in the last twelve months. It’s not necessarily that you’ve been top of the ladder for years, it’s often that in the year you climbed more rungs on the ladder than anyone else.
supporting evidence Wherever feasible, supporting evidence should be provided such as specific transactions, actions, outcomes or
the leasing World awards are upon usthere can be no doubt that the night of the leasing World awards Dinner offers huge enjoyment to its guests, with many elated spirits, and maybe even a few stifled snuffles
Feature
gefA NEW LEASE OF LIFE
GENERAL EQUIPMENT FINANCE LiMITED
CALLING ALL LEASING BROKERS
Would you like to know the value of your brokerage deal portfolio?
We can help you …
Release fresh cash for your business without borrowing or investing other funds.
Cash to grow, improve your business or increase your sales.
Cash to ful�l your goals or release a well earned bonus for you …
Email us NOW with your details and the best time to contact you(it is free and easy)[email protected]
Please contact Linda or Max on 0114 437 2034
Visit www.gef.com
We, at GEF with a long history of supporting leasing brokers can …
Release the value of the future income due on your deal portfolio immediately.
GEF will:
Provide a no obligation valuation based on your portfolio.
Provide all documentation required to release your cash quickly and easily.
Broker World half page 160614.indd 1 16/06/2014 10:50
JUne 2014 15
See us at NACFB Expo Stand C04
Feature
Two presentations at a recent conference on Financing SME Growth in the UK, organised
by Middlesex University’s Centre for Enterprise and Economic Development Research, suggested to one of the audience, Julian Rose of Asset Finance Policy, that asset financiers shouldn’t write-off P2P.
He writes in his blog: How can a mostly unskilled (in asset finance) group of small investors make good lending decisions for leases? Why are the businesses seeking investment using the comparatively complicated and slow P2P route rather than going straight to a lessor? How well will the loan be managed? There are a host of concerns, heightened perhaps by the carrot of 6% or higher annual returns that may be dangled in front of investors and seem too good to be true (and probably are given they are based on small numbers
of new agreements). Returns on direct P2P investments will
be tax free when included in ISAs from next April (although the details have still to be worked out), and ISA-ready funds investing through P2P platforms are already being launched.
Jeff Lynn, CEO of P2P equity investment platform Seedrs, emphasised that a P2P operation is like an iceberg. It is less about the visible part – the website – and more about the deal and risk management that takes place underneath (and doesn’t come for free by any means, so expect more modest returns). The key requirement is to build and maintain investors’ trust in the platform.
An equivalent of Seedrs for asset finance – where the credit assessment and management of the book on behalf of investors is nothing less than best in class across the industry – could work and be the start of something big. bW
p2p iceberg effectit’s difficult to see a place for peer-to-peer (“p2p”) lending platforms in the asset finance industry, although it is talked about regularly
www.libertyleasing.co.uk
023 8045 [email protected]
Hire Purchase, Refinance, Finance Lease
Advances from £15,000 - £500,000
Prestige, Classic and Fleet Cars
All Commercial Vehicles
Heavy Plant / Machinery
Visit our website at:
Helping Fund UK Business
behaviours that clearly support the award category. It is wise to assume that the judges have no prior knowledge of the proposed candidate as they are instructed to judge the award BASED SOLELY ON THIS SUBMISSION.
What kind of submissions have succeeded in the past? Sometimes the nomination comes with a 50-slide PowerPoint presentation, and the company then nominates itself for half a dozen categories (now limited to two maximum) . . . so the judges see that mega presentation coming up over and over again, which may be counter-productive with the judges. Sometimes, the nomination comes with a single paragraph . . . and it’s not at all clear what the rationale for the nomination actually is.
So, probably, a good strategy is to submit a presentation that’s lean, but not mean. Words that immediately engage the judges, with a momentum that gets the ball rolling from the word Go, and close the pitch before the judges’ concentration starts to tire.
Good luck with your Nomination, you know what to do, you do it every day when you sign up a new customer !!! bW
16 JUne 2014
Feature
The HMRC ViewHMRC argued that a motor vehicle finance agreement called “Agility” was a supply of goods. The Upper Tribunal held that it was, in fact, a supply of services. This may seem surprising, but the reasons for the decision are explained below. This will have major cash flow implications for the vehicle leasing industry.
Mercedes offered its customers the use of a vehicle in three ways: leasing, hire purchase and Agility. Under each, the customer made monthly payments for a specified period. Under both HP and Agility the customer had the option at the end of the period to acquire the vehicle.
If the Mercedes was liable to account for VAT on the entire purchase price upfront, with an adjustment if the customer
exercised their right to terminate. If the Agility agreement were treated as
HP, Mercedes would be liable to account for VAT upfront on the entire purchase price, with an adjustment if the customer did not exercise the option at the end of the contract. Roughly 50 percent of customers chose not to exercise the option and returned the vehicle. By the time of the hearing in March 2014, Mercedes estimated that the VAT at issue was around £160 million.
In the HP agreements, the customer was contractually obliged to pay all of the payments (excluding the £95 option fee), including the balloon payment (the Upper Tribunal ignored the statutory
“Ma, please won’t you buy me a Mercedes benz”You may think when you hire a Mercedes (or any other vehicle!) that for Vat purposes, it will always be treated the same way. but a recent case (see Mercedes-benz financial services Uk ltd v revenue and customs commissioners [2014] UkUt 0200) indicates that this is not so
ProfileSEPTEMBER 2013 09
Private & Commercial Finance,the AIM-listed finance house,will celebrate 20 years in
business later this year and hasrecently re-branded as it enters a newchapter in its history.
The new brand, which includeschanges to both the logo and colourscheme, has been designed with afresh approach in mind. Last year sawthe group put in place the foundationsfor it to flourish with a £5.4 million
fund-raising, supported by its major shareholder, BermudaNational Limited, and a 3 year, £55 million committedsenior debt facility from Barclays. These foundations haveallowed the group to become more active in both of itschosen market places – car finance for consumers and vehicle& asset finance for SMEs.
Since it started business in 1994, Private & CommercialFinance has worked closely with the broker community tohelp over 60,000 consumer and business customers toacquire vehicles and business assets. Based near LondonBridge, the team of 47 has a huge range of experience andknowledge, with nearly a third of them having worked for
the company for over 10 years. This ensures short lines ofcommunication, the ability to respond quickly and, perhapsmost importantly, easy contact with the right individualrather than the use of a call centre based operation.
Robert Murray (pictured), Managing Director commented,“I have worked for the group since day one and the journeyhas been hugely enjoyable although not without a fewchallenges along the way. Certainly being a non-bank ownedfinance company has not been easy in recent years but I drawhuge comfort from what we have achieved in remainingprofitable and having a continued presence in the marketthroughout this period. Following last year’s successfulfundraising exercise the future sees us well placed tocontinue supporting our brokers and customers and toincrease our portfolio from £80 million to £100 million by31st March 2014.
“My message to the broker community is we are verymuch open for business, providing a quality service toconsumers and businesses. We have many brokerrelationships which date back over 15 years and are veryappreciative of the support they have given us. But, with £20 million of headroom on our banking facilities, we arenow keen to add to our panel and are happy to talk to anybrokers who have not dealt with us before.” BW
Contact us 020 7222 2426www.pcfg.co.uk
Private & Commercial Finance Group plc, Brandon House, 180 Borough High Street, London SE1 1LB
SUPPORTING THE BROKER MARKET FOR 20 YEARS
Very much open for business
BW0913.e$S_Layout 1 18/09/2013 10:18 Page 9
JUne 2014 17
Featureright of termination). It would not, therefore, be in the economic interests of the customer to fail to exercise the option. Under the Agility agreement, the customer was left with a real choice as to whether to exercise the option and was under no contractual obligation to do so. The optional purchase payment under Agility equated to 44 percent of the value of the vehicle, which was estimated to be its residual value at the end of three years.
Implications of the decisionWhilst this case will not affect HP
agreements where the customer is contractually obliged over the life of the contract to pay the entire price for the vehicle, it should give certainty (and a cash flow benefit) to those situations where there is no such contractual obligation and the customer has a genuine choice as to whether to pay the difference and keep the vehicle, or hand it back.
It is also worth noting that all of the options involved the customer obtaining the use of a Mercedes over the 36 month period, but only one – the HP agreement – was treated as a supply of goods so that VAT was payable on the full price at the outset. The other products were a lease and the Agility product and were held
legally to be the supply of services for VAT purposes. Leases are not, therefore, a credit agreement but a supply of services/hire agreement under VAT law. Contrast this outcome with accounting standards (not law) as to whether, the Agility product was a finance lease or an operating lease. Finance leases are accounted for (following international accounting standards) as credit, but operating leases are brought into account as an expense.
Operating Lease v Finance lease DebateWhether the Agility product was a
finance lease or an operating lease was not considered by the court but it is arguable that it has some characteristics of both. Critically, the designation for VAT purposes is one factor in determining whether in law a lease is credit or not. The taxation and accounting treatment of a finance agreement may not match in all cases and accounting treatment following internationally agreed standards is not a test of a lease’s designation in law. It is suggested the VAT treatment is a stronger determinative factor of legal status.
James Baird, Partner for Gateley LLP [email protected]
James baird
by the time of the hearing in March 2014, Mercedes estimated that the Vat at issue was c. £160m
Five Arrows Leasing Group Limited, Heron House, 5 Heron Square, Richmond Surrey TW9 1EL, United KingdomTelephone +44 (0)20 8334 3900 | Facsimile +44 (0)20 8332 1636 | www.fi vearrowsleasinggroup.com
Registered number 2189858 England. Registered offi ce as shown. A member of the Rothschild Group
• Looking to purchase new fi xed assets for your business?
• Unable to fund the required deposit?
• Does your business turnover less than €50million (£35 million) annually?
• Will you recruit new employees or safeguard existing jobs as a result of the new asset purchase?
If you can answer ‘yes’ to all of the above, your business may be eligible for a grant up to 20% of the value of the capital investment through the Assisted Asset Purchase Scheme, from Five Arrows Leasing Group Limited delivered by Five Arrows Business Finance.
The scheme enables eligible SMEs to receive a grant from the Government’s Regional Growth Fund towards the deposit for the acquisition of fi xed assets. The grant can be up to a maximum of 20% of the value of the capital investment, depending on your business’s size and the number of jobs that are being created or protected.
To discuss the Assisted Asset Purchase Scheme, please contact your local Account Manager.
Alternatively email: [email protected] or telephone: 01489 775600 quoting RGF.All applications are subject to status. Terms and conditions apply.
SME Capital Investment Grants Available Now
PrintFinance SS RGF A5 Advert.indd 1 30/03/2014 21:52See us at NACFB Expo Stand F01
18 JUne 2014
Legal
Subject to limited exceptions, the Consumer Contracts (Information, Cancellation and Additional Charges)
Regulations 2013 Regulations apply to all “consumer contracts” whether “on premises” (e.g. concluded face to face at the trader’s premises), “off premises” (e.g. door to door sales) or “distance sales” (e.g. online).
For these purposes, a “consumer” is an individual acting for purposes which are wholly or mainly outside that individual’s trade, business, craft or profession, although there have been some unexpected interpretations of this definition.
What information is to be provided before the contract is made? The information to be made available includes (among other items) information about the main characteristics of the goods/
services, the trader’s identity, geographical address, total price of the goods or services inclusive of taxes (or where the nature of the goods/services is such that the price cannot reasonably be calculated in advance, the manner in which the price is to be calculated), additional delivery charges (where applicable) and the trader’s complaint handling policy (where applicable).
The information to be given and whether cancellation rights under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply depends upon the type of contract.
The information requirements in the case of “distance contracts” are more extensive than under the Consumer Protection (Distance Selling) Regulations 2000.
Certain information to be given to the consumer is to be treated as a term of the contract. A change to that information, whether made before entering into the contract or later, is not effective unless expressly agreed between the consumer and the trader.
What steps should we be taking? If you have not already done so, it is essential to review and update your sales processes, terms of business and operating procedures. bW
Yasmin Dossabhoy, principal, afl [email protected] www.finance-law.info
This article is for general information purposes only. Its contents should not be relied upon under any circumstances. No liability of any kind is accepted for its use, contents or any reliance placed upon it.
are you entering into contracts with “consumers”?new regulations came into force on 13 June requiring specific information to be made available to consumers before certain contracts are made
dataFLA BrokEr FiNANCE StAtiStiCS (£ miLLioNS) mArCH 2014
Uk BrokEr FiNANCE NEw BUSiNESS FiNANCE By moNtH
Uk BrokEr FiNANCE NEw BUSiNESS FiNANCE By qUArtEr
FLA BrokEr FiNANCE NEw BUSiNESS By ASSEt 12 mtHS to mArCH 2014 (£m)
£’m
250
300
350
£’m
Cars 632
Commercial Vehicles 986
Plant & Machinery 1103
IT Equipment 197
Business Equipment 383
Other 710
Nov 13
Jun 13
Apr 13
Mar 13
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014
May 13
Jul 1
3
Aug 13
Sept 13
Oct 13
Dec 13
600
800
1000
1200
£’m
200
250
300
350
400
Jan 14 250
300
350
400
Feb 14
600
800
1000
1200
250
300
350
400
Mar 14
1103(6%)
986 (11%)
197 (6%)
632(-12%)
710(7%)
383(7%)
Note 1: cumulative totals are subject to rounding differencesSource: FLA
Current month compared Twelve months to
March 2014 March 2013 Month change March 2014 March 2013 Yearly change
Broker finance 395 289 37% 4,011 3,857 4%
£’m
250
300
350
£’m
Cars 632
Commercial Vehicles 986
Plant & Machinery 1103
IT Equipment 197
Business Equipment 383
Other 710
Nov 13
Jun 13
Apr 13
Mar 13
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014
May 13
Jul 1
3
Aug 13
Sept 13
Oct 13
Dec 13
600
800
1000
1200
£’m
200
250
300
350
400
Jan 14 250
300
350
400
Feb 14
600
800
1000
1200
250
300
350
400
Mar 14
1103(6%)
986 (11%)
197 (6%)
632(-12%)
710(7%)
383(7%)
£’m
250
300
350
£’m
Cars 632
Commercial Vehicles 986
Plant & Machinery 1103
IT Equipment 197
Business Equipment 383
Other 710
Nov 13
Jun 13
Apr 13
Mar 13
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014
May 13
Jul 1
3
Aug 13
Sept 13
Oct 13
Dec 13
600
800
1000
1200
£’m
200
250
300
350
400
Jan 14 250
300
350
400
Feb 14
600
800
1000
1200
250
300
350
400
Mar 14
1103(6%)
986 (11%)
197 (6%)
632(-12%)
710(7%)
383(7%)
See us at NACFB Expo Stand G05
JUne 2014 19
Association News
An exercise in future tense from Adam Tyler, CEO NACFB
At the time this magazine lands on your doormat, we’re either travelling up to our Expo, or travelling back from it. Either way, it’s all motorways and Radio Four, and back issues
of BrokerWorld which we keep in the door pockets. But right now, as I sit typing, there’s no Radio Four (I’m not really a You and Yours fan anyway) and I’m trying to work out where we can fit NatWest’s double decker bus into the Expo floorplan.
Word seems to have got out that our members love converted Routemasters almost as much as they love the idea of all bank-rejected SME funding requests being redirected to the NACFB. There is an ongoing Consultation on SME Referrals from the High Street Banks,
and I’ve been one of the consultants. The thrust of the debate is how we can nationally offer a positive suggestion after a negative response; something to stop small business owners feeling like there is nowhere to turn.
Not every business requirement can be moulded to fit every set of lending criteria. The lenders we work with are often very specialist, one won’t touch unsecured lending, another has made that its primary focus. So it’s very easy for the SME owner to approach the wrong man for the job and it’s very easy for a high street bank, as much as any lender, to have good reasons for turning the applicant away. It is at that stage that we need a plan that reassures them there is somewhere else to go.
There have been fifty ideas put forward. Our own favourite among those ideas is that these businesses come to the NACFB; we are a not for profit organisation and we know who wants to lend and what they want to lend on. My argument is that we know better than anyone that there is always someone to turn to who
can make the loan and get the business growing, and there should be full choice for any referred SMEs.
Full choice means having equal access to all the lenders, and also it is prudent to consider other options and advisers such as accountants and other financial advisers who specialise in lending to businesses.
We have experience of high street bank referrals; in a recent survey we commissioned, half of our members already receive leads on an informal basis from the high street banks. Of these, three out of four are placed with another lender. We’ve considered all the options backed up by the unabridged response from not only our members, but written statements providing backing from 95 percent of the lenders in the market.
It’s a big subject and one that is bound to come up, to have come up, or to be coming up right now, at our Expo. I hope many BrokerWorld readers are, will be, or have been in the audiences and the crowds. If you are or were, why don’t you/didn’t you drop by our stand A01 to pay us a visit?
aSSocIatIoN NEWS
Asset Finance
Investec Asset Finance plc is authorised and regulated by the Financial Conduct Authority for credit-related regulated activities (including hiring). Investec Asset Finance plc is also an appointed representative of Investec Bank plc for the purposes of insurance mediation activities, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Reading International Business Park, Reading, RG2 6AA. Registered in England Number 2179313.
An asset to the UK broker marketThroughout the Investec Test Series this summer, we’re promoting the benefits
of asset finance to cricket fans. We hope that through increased awareness,
the UK asset finance market will continue to grow. Advertising will be seen on
video screens, 4/6 cards at the grounds and in the match day programme.
From small-ticket to over £10m, if you’re looking to arrange finance for your client,
Investec Asset Finance will keep you on the front foot.
Visit investec.co.uk /assetfinance
C33826.002_AF_Brokerworld_Jul14_297x210_v4.indd 1 13/06/2014 17:26
